Trinidad and Tobago makes progress on Dragón gas field cooperation with Venezuela to boost LNG capability
Trinidad and Tobago, which used to be the main LNG supplier to the US before the shale-gas boom in the late 2000s, said it would begin formal talks in March with Venezuela for joint development of the offshore Dragón gas field that will help boost the Caribbean island nation’s LNG export capability.
Northeast US states to pay highest for winter power for lack of LNG cargoes to offset lower pipeline supplies
While the US is now one of the world’s largest LNG exporters, the government said states in the Northeast US will pay the highest electricity prices because of inadequate natural gas pipeline supplies, reduced inventories and difficulties in securing LNG shipments for domestic use because of tight global supplies and high prices.
“We forecast that wholesale electricity prices at major power trading hubs will be about 20-60 percent higher on average this winter,” said the Energy Information Administration in its short-term and winter energy outlook.
“The highest wholesale electricity prices are likely to be in New England because of possible natural gas pipeline constraints, reduced fuel inventories for power generation and uncertainty regarding liquefied natural gas shipments given the tight global supply conditions,” explained the EIA report.
The report’s conclusions mean that people in the states of Maine, Vermont, New Hampshire, Massachusetts, Connecticut and Rhode Island will pay the highest power bills in the nation this winter.
The US benchmark Henry Hub natural gas price is expected to remain above $7 per million British thermal units in the winter season.
Henry Hub price
“We expect the Henry Hub natural gas spot price to average about $7.40 per MMBtu in the fourth quarter and then fall below $6.00 per MMBtu in 2023 as US natural gas production rises,” said the EIA report.
“We forecast that US natural gas inventories will end the injection season (April-October) at nearly 3.5 trillion cubic feet, which would be 6 percent below the five-year (2017-2021) average,” the report added.
US consumption of natural gas is forecast as averaging 87.9 billion cubic feet per day in 2022, up 3.9 Bcf per day from 2021 and reflecting more consumption across almost all sectors.
US dry natural gas production averaged 98.5 Bcf per day in the third quarter.
“We forecast natural gas production will average 99.1 Bcf per day in the fourth quarter and 99.6 Bcf per day in 2023,” stated the EIA.
Natural gas will fuel 38 percent of US electricity generation in 2022, up from 37 percent in 2021.
Renewables and coal
“Growing generation from renewable sources limits growth in natural gas-fired generation and coal’s generation share declines because of the expected retirement of some coal-fired capacity,” the report explained.
The outlook forecasts Brent crude oil spot prices averaging $93 per barrel in the fourth quarter and $95 per barrel in 2023.
“Potential petroleum supply disruptions and slower-than-expected crude oil production growth could lead to higher oil prices, while the possibility of slower-than-forecast economic growth may contribute to lower prices,” said the EIA.
“US crude oil production is forecast to average 11.7 million barrels per day in 2022 and 12.4 million barrels per day in 2023, which would surpass the record high set in 2019,” the report added.
Lights may all go out in Massachusetts as first US state to have LNG looks at phasing out natural gas
The state Attorney General of the northeast US state of Massachusetts has asked the public utilities regulator to investigate if there is a future for the natural gas industry as the state wants to stop burning fossil fuels because of climate change.
